In April 2023, the UK government introduced a "price cap" for energy providers,Effective from April 1, £111 million financial Rogers (now Universal_weekday grid operator) up to £119 million customers will be charged more on average, increasing £111-£119 in annual energy bills across the UK. This cap limits energy providers to pay no more than £0.015 per kilogram of gas used or £0.017 per kilogram of electricity, whichever is higher.
Impact on Households:
- Average Increase: A standard household spending £111 per year on gas and electricity will now pay £111 more, totaling £222 annually (down from £247). However, those paying via prepayment or cash using a credit card might pay additional £119, while others, including some through debit credits, would pay £89 more.
Methods to Save:
- Direct Debit: Many pay benefits via Direct Debit saving up to £1,849 per year.
- Prepayment Meters: Lower pricing options through prepayment meters, which are cheaper, can reduce costs to £1,533 per year.
Factors Influencing Costs:
- Households using less electricity might see a £110 saving (3%) on their rate.
- Stronger residents using more energy could see a £130 saving (3.3%).
- Credit card payments may reduce savings by £102 (1%).
Methods to Calculate Cost:
- Unit rates and standing charges determine costs. For average usage, or impact household may pay £1,849 (6.99p/kWh for gas and 27p/kWh for electricity) or £1,968.
How to Prevent Disconnection:
- households using payment systems may be less at risk of disconnection. Those only paying for running costs might be safer.
Addressing Energy Stress:
- Direct Debit and Prepayment Meters are effective and free of blackouts once set up.
- To switch, visit your energy provider and set up your account. Write to your provider for system setups.
Energy Billing Services:
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cloves to Embrace Energy:
- Prioritise Services Register (PSR) for those struggling; includes free gas safety checks and support with advice.
- Work with your supplier for better deals or regional offers.
Conclusion:
The price cap reflects a balance between fairness and savings. If you’re paying by Direct Debit and concerned about bill stress, reaching your supplier is recommended.
